Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are two stocks with lasting competitive advantages and one that may correct.
One Stock to Sell:
National Vision (EYE)
One-Month Return: +21.3%
Operating under multiple brands, National Vision (NYSE: EYE) sells optical products such as eyeglasses and provides optical services such as eye exams.
Why Do We Steer Clear of EYE?
- Recent store closures reflect a shift toward streamlining existing locations to maximize efficiency
- Subpar operating margin of 0.3% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
National Vision is trading at $23.06 per share, or 38.2x forward P/E. To fully understand why you should be careful with EYE, check out our full research report (it’s free).
Two Stocks to Watch:
DoorDash (DASH)
One-Month Return: +17.1%
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE: DASH) operates an on-demand food delivery platform.
Why Do We Love DASH?
- Orders have grown by 21% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 105% outpaced its revenue gains
- Free cash flow margin jumped by 11.3 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $239.97 per share, DoorDash trades at 35.9x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
Hamilton Insurance Group (HG)
One-Month Return: +3.6%
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Are We Positive On HG?
- Impressive 36.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Market share has increased this cycle as its 26.1% annual net premiums earned growth over the last two years was exceptional
- Combined ratio improvement of 13.8 percentage points over the last two years demonstrates its ability to scale efficiently
Hamilton Insurance Group’s stock price of $21.65 implies a valuation ratio of 0.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
